MB 0041 – Financial and Managerial Accounting –
Roll No. 1305015785
Name of the Student: Pallab Kakoti
Email id: firstname.lastname@example.org
Mobile : 958 256 3250
Q1. Accounting is one of the oldest, structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting?
Accounting, as an information system is the process of identifying, measuring and communicating the economic information of an organization to its users who need the information for decision making.
American Institute of Certified Public Accountants (AICPA) defines accounting as a service activity wherein its function is to provide quantitative information, primarily financial in nature and about economic activities that is intended to be crucial in making economic decisions
Book-keeping is the science and art of recording transactions in money or money’s worth so accurately and systematically, in a certain set of books, regularly that the true state of businessman’s affairs can be correctly ascertained.
Objectives of Accounting:
* Accounting serves this purpose of record keeping by promptly recording all the business transactions in the books of account
* Accounting helps in ascertaining result i.e., profit earned or loss suffered in business during a particular period.
* Accounting facilitates reporting of results to both internal and external users. The management requires information for internal purpose at various levels of operations.
* Accounting is required to fulfill the statutory requirements of various regulatory bodies such as Registrar of Companies, Securities Exchange Board of India (SEBI) income tax authorities, and the Government.
* Accounting helps in internal control by holding the concerned persons responsible for any errors, lapses, or under performances.
Q2. Explain GAAP and write down the relationship